eWorkLaw.ca : SAMPLE TERMINATION LETTER

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SAMPLE TERMINATION LETTER

This letter is written for the termination of a non-unionized employee in Canada. It is not intended as legal advice. Use it at your own risk. For a termination letter for a unionized employee, visit here.

If you have any questions, select the envelope icon at the bottom of this page to send me an email. Alternatively, call me at 1-888-eWorkLaw.

Ms. E. M. Ployee

c/o Widget Co. Inc. Ltd.

19 Great Lane Ave.,

Kingston, Ontario

Dear Ms. E. M. Ployee:

This letter serves as a confirmation of our discussion earlier today, in which you were notified that your employment with our company has come to an end. The latest in a series of problems with your employment occurred when you were unable to balance the company’s cash payables. You were out over $10,000 and this has happened repeatedly in the past. With our coaching and training, and our repeated warnings, you have been unable to meet our standards of quality bookkeeping. Therefore, because Widget Co. believes that you are no longer capable of performing your duties to our standard, you last day of employment with this organization will be today.

Widget Co. is making you the following offer, which will assist you in locating new employment elsewhere and reflects the years of service you have given us:

(1) Widget Co. will continue your current salary for seven (7) months, or until you commence employment elsewhere, whichever period is the shortest..

(2) In the event that you commence employment within the seven (7) month period, Widget Co. will pay you a lump sum equal to fifty-five percent (55%) of the remainder of the salary you otherwise would have collected over the seven (7) month period.

(3) In addition, Widget Co. will continue your benefits, with the exception of out of country medical coverage and long term disability during the seven (7) month period or until you commence employment elsewhere, whichever occurs first. Your entitlement to long term disability benefits shall cease two weeks from today. [Check with your insurance carrier!—e.d.]

(4) In addition we will continue to make pension plan contributions, subject to the salary continuation payments provided for above. When the salary continuance ends, there will be no further contributions made to the pension

(5) Widget Co. has engaged Out Sorcerers Inc. for the next four months. They are relocation counsellors, who will help you find new employment.

(7) You will be paid your accrued vacation pay on your next pay cheque. Your record of employment (ROE) will be provided to you at the end of the period of salary continuation.

The payments provided in this letter are conditional upon you accepting the following conditions:

(1) Your prompt reporting to the Widget Co. of any employment which you might commence in the next 6 months.

(2) You maintaining strict confidentiality with respect to the terms of this arrangement, except discussion with your financial or legal advisers.

(3) You further agree to keep confidential all information received or to which you had access during your employment with the Widget Co. Inc.

(4) Your agreement to sign and return an original copy of the attached release agreement on or before the end of business Friday of this week. [Ensure the employee releases all relevant or possible claims against the employer—e.d.]

All payments referred to in this proposal are subject to the usual statutory deductions.

I would be pleased to arrange a time to meet so you can collect your personal belongings. We ask that in any event, you return your keys to us before leaving today and any company property that you might have in your possession.

Please call me if you have any question about this agreement.

Sincerely,

Mr. Vern Vernons